Tyro share price on watch as Westpac takeover approach confirmed

All eyes will be on the Tyro Payments Ltd (ASX: TYR) share price on Tuesday after the company confirmed it’s in the sights of S&P/ASX 200 Index (ASX: XJO) banking giant Westpac Banking Corp (ASX: WBC).

It follows weeks of speculation the fintech could be a takeover target for the big four banks. The ASX 200 giant could seek to benefit from the smaller company’s tech offerings.

The Tyro share price was trading at $1.56 as of Monday’s close.

Let’s take a closer look at the latest news from the All Ordinaries Index (ASX: XAO) tech stock.

Tyro share price in focus amid Westpac takeover talks

The Tyro share price is on watch amid news the company has been approached by several parties looking to strike an acquisition deal. Those include ASX 200 big four bank Westpac.

The value of any potential takeover bid isn’t clear. Though, Tyro knocked back a $1.27 per share takeover offer last month. It said the bid was “highly opportunistic” and undervalued the company.

Morgan Stanley reportedly believes an offer in the range of $2 per share and $2.50 per share would represent fair value.

It’s also worth noting the company’s major shareholder, Grok Ventures – the investment vehicle of Atlassian Corporation (NASDAQ: TEAM) billionaire Mike Cannon-Brookes – supported the $1.27 per share offer.

Tyro today confirmed the takeover talks in response to media speculation. It said all discussions are neither definite nor advanced and don’t offer any certainty of a future bid or transaction.

However, if a bid from Westpac proves successful, it could impact the smaller company’s deal with Bendigo and Adelaide Bank Ltd (ASX: BEN), the Australian Financial Review notes.

That deal brought Tyro $5.2 billion of transactions last financial year, representing around 15% of the company’s total transaction value.

The Tyro share price has suffered amid a broader tech sell-off in 2022, dumping 47% year to date. It has also fallen 62% over the last 12 months.

The post Tyro share price on watch as Westpac takeover approach confirmed appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian and Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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